Ask the Spud: Is There an Optimal Portfolio?
Q: I’m new to passive investing and am deciding how to allocate between the asset classes. The best split between Canadian equity, international equity, etc. should be determinable based on studies of...
View ArticleDo Bonds Still Belong in an RRSP?
It has long been conventional wisdom that bonds should be held in RRSPs wherever possible, since interest income is fully taxable. Once you run out of contribution room, equities can go in a...
View ArticleRebalancing With Cash Flows
With stocks continuing to enjoy a roaring bull market, rebalancing is on the minds of many investors—or at least it should be. Disciplined investing starts with choosing long-term targets for the asset...
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Seeing Diversification in Action
Why should you add multiple asset classes to your portfolio? That seems like a simple question, but it’s one many investors would answer with only a vague comment about “more diversification.” It’s...
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Managing Multiple Family Accounts
Model portfolios like those I recommend are ideal for investors who have a single RRSP account. But life isn’t so simple once you’ve accumulated a significant portfolio: chances are you’ll be managing...
View ArticleAsk the Spud: Should I Use Global Bonds?
Q: I was surprised to see a Vanguard infographic pointing out that international [non-US] bonds are the largest asset class in the world. Do you have any thoughts on why Canadians have not embraced...
View ArticleAn Interview With Wealthsimple: Part 2
Earlier this week I published an excerpt from my interview with David Nugent, portfolio manager of the online investment service Wealthsimple. In this second part of our interview, Nugent goes into...
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The Role of Preferred Shares
Preferred shares are often considered a hybrid security, since they share characteristics of both common stocks and corporate bonds. Like bonds, preferreds typically have a predictable income stream....
View ArticleDoes Your Portfolio Need Preferred Shares?
Last week’s blog introduced a new white paper, The Role of Preferred Shares in Your Portfolio, coauthored with my colleague Raymond Kerzérho, director of research at PWL Capital. That article looked at...
View ArticleAre Preferred Share Indexers Dumb Money?
It’s hard to keep a straight face while arguing for active strategies in asset classes like large-cap stocks or government bonds. Those markets are so liquid and so well covered by analysts that it’s...
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Ask the Spud: Do Aggressive Portfolios Pay Off?
Q: I noticed that over the long term (10 to 20 years) the average returns of your model portfolios are quite similar regardless of the asset allocation, but the maximum losses vary dramatically. Would...
View ArticleHow Budget 2015 Will Affect Investors
Yesterday’s federal budget included several changes that will affect investors—in the future if not immediately. Let’s look at the three most important announcements, with a focus on how they may apply...
View ArticleShould You Replace Bonds With Cash?
Not many investors are enthusiastic about bonds these days, and it’s hard to blame them. While rates have ticked up in the last few weeks, they’re still so low that even some sophisticated investors...
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Raining on the All Seasons Portfolio
Investors are hungry for success stories, especially tales that include high returns with low risk. And the investment industry is always happy to stoke that appetite. One of the most popular stories...
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It’s Better With Beta
The title of Larry Swedroe’s latest book, The Incredible Shrinking Alpha, raises a question: what happened to the idea that skilled managers can consistently beat the market? In a recent interview with...
View ArticleThe Real Problem With Inflation-Protected Bonds
When I announced my stripped-down model portfolios at the beginning of last year, one of the asset classes I dropped was real-return bonds (RRBs). Part of the reason was simplicity: it’s easier to...
View ArticleCost Versus Convenience in “ex Canada” ETFs
I used to own one of those one-piece cutlery tools designed for hiking and camping—the kind with a knife, fork and spoon that all fold into a single unit. It was hardly ideal for eating, especially if...
View ArticleCouch Potato Portfolio Returns for 2016
If you believe the media, 2016 was an annus horribilis: some even dubbed it the worst year ever. I think there were a few years during the Great Depression or World War II that might have been worse,...
View ArticleCouch Potato Portfolio Returns for 2017
They contained no marijuana stocks and no bitcoin, but the Couch Potato portfolios put up another good year in 2017. Once again, investors were rewarded for simply following a disciplined, low cost,...
View ArticlePodcast 16: Common Sense With Ben Carlson
In Episode 16 of the Canadian Couch Potato podcast, I’m joined by Ben Carlson, the author of A Wealth of Common Sense and creator of the excellent blog of the same name. Ben is also Director of...
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